Chapter 11 Quiz BU270 PRINCIPLES of MARKETING

Chapter 11 Quiz BU270 PRINCIPLES OF MARKETING

Chapter 11—Retailing

NAME:______SCORE:______DATE

TRUE/FALSE

1. Retailing can be defined as all activities directly related to the sale of goods and services to the ultimate consumer for personal and nonbusiness use.

REF: p. 350

2. The retailing industry is dominated by a large number of small- and medium-sized companies.

REF: p. 350

3. L.L. Bean sells casual clothing through catalogs mailed to homes and online service. Because L.L. Bean does not have a store front, it is not considered a retailer.

REF: p. 350

4. A retail establishment can be classified according to its ownership, level of service, product assortment, and price.

REF: p. 351 5. In general, the higher the gross margin, the lower the prices at the store.

REF: p. 352

6. Esther Jui has just opened a specialty store that will sell Asian wedding gowns to Asian-Americans who want a traditional wedding. Because it will be a specialty store, she should have a broad product assortment with moderately low prices.

REF: pp. 351-352

7. Lou Farrigamo is the store manager of a local retailing establishment that sells a wide variety of shopping and specialty goods, including apparel, cosmetics, housewares, and electronics. Farrigamo probably manages a department store.

REF: p. 352

8. Hildebrand Stein operates a retail store that has a wide assortment of window treatments with little depth in any one product line. Stein operates a specialty store.

REF: p. 353

9. Roland LaFarge owns an appliance store where he also sells bird feeders, tools, electrical and plumbing supplies, collectible figurines, homemade candy, and greeting cards, as well as wall paint. LaFarge uses multibrand merchandising.

REF: p. 354

Business Division COM-FSM National Campus Chapter 11 Quiz BU270 PRINCIPLES OF MARKETING

10. Baggie Waggie is the name of a chain of small stores, which carry high-turnover products such as lip balm, milk, laundry detergent, bread, and aspirin. Baggie Waggie stores are open all day every day and would best be classified as convenience stores.

REF: p. 355

11. A typical discount store competes by carrying a limited line of high-turnover, high-margin goods.

REF: p. 355

12. Supercenters are more than just larger versions of traditional "markets." In addition to foodstuffs, supercenters have pharmacies, dry cleaners, portrait studies, photo finishing, hair salons, and restaurants.

REF: p. 356

13. Specialty discount stores are often called category killers because they dominate the competition in their narrow merchandise segment.

REF: p. 357

14. Off-price retailers differ from other discount stores in the merchandise they carry. While most other discounters offer a predictable assortment of merchandise, the styles and brands offered at off-price retailers change frequently because they buy only what is currently available at a good deal.

REF: p. 358

15. Marketers who use nonstore retailing no longer have to worry about the "place" element of the four Ps.

REF: p. 359

16. Most direct retailers use a party plan in lieu of door-to-door selling.

REF: p. 360

17. Gloria sells high-end cookware for the Pampered Chef. She throws parties at her friends’ houses, where her friends and their friends can buy products. This is known as telemarketing.

REF: p. 360

18. The person who called Grace last night and tried to sell her a subscription to Better Homes & Gardens magazine was using inbound telemarketing.

REF: p. 362

19. Electronic retailing includes the twenty-four hour, shop-at-home television networks and on-line retailing.

REF: p. 362

20. The two types of franchising are target market franchising and geographic franchising.

REF: p. 365 21. The six Ps of the retailing mix are product, place, price, promotion, personnel, and planning.

REF: p. 367

Business Division COM-FSM National Campus Chapter 11 Quiz BU270 PRINCIPLES OF MARKETING

22. Petco has just purchased a sizable plot of land on which it will build a store building with a large parking lot. Across the street is a collection of specialty shops and a furniture store. Petco will be part of a strip shopping center.

REF: p. 370

23. To ensure that a firm has the desired atmosphere, retailers must select appropriately dense employees with lots of character.

REF: p. 373

24. For the past few years, adding interactivity in the retail environment has been one of the most popular strategies in retailing.

REF: p. 375

25. M-commerce is a type of managed commerce in which both buyer and seller end the transaction with a win-win feeling.

REF: p. 376

Business Division COM-FSM National Campus